A Downward Shift in the Consumption Function Can Be Caused

question 165

Multiple Choice

A downward shift in the consumption function can be caused by

• A) expectations of product shortages.
• B) expectations of more income in the future.
• C) a decrease in consumer confidence.
• D) rising property values that increases households' net worth.

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Definitions:

Economic Resource

Assets or inputs that have the potential to contribute to the production of goods and services, providing economic benefit to businesses or individuals.

Asset

Resources owned or controlled by a business, projected to bring future economic benefits.

Measurement Alternative

An accounting option that allows entities to measure certain investments at cost, minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.

Receivables

Debts owed to a company by customers or other parties arising from the sale of goods or services or loans given.